China's central bank injects CNY 195B into banking system, maintains key interest rate of 1.4%

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The People’s Bank of China (PBOC) injected a net CNY 195 billion into the banking system today, continuing its efforts to boost liquidity. This was achieved by conducting CNY 487 billion in reverse repos at an unchanged interest rate of 1.4%.

The move follows the recent US Federal Reserve interest rate cut.

The PBOC last lowered the seven-day reverse repo rate by 10 basis points in May.

On the economic front, fiscal revenue increased by 0.3% year-on-year in the first eight months of 2025, slightly up from a 0.1% rise in the January–July period, according to the Finance Ministry.

China is halting its antitrust investigation into Google, according to the Financial Times on Thursday, as trade negotiations between Beijing and Washington heat up over tech giants like TikTok and Nvidia.

On Thursday, the Shanghai Composite [https://seekingalpha.com/symbol/SHCOMP?source=section%3Asearch_bar%7Ccontent_type%3Aall%7Csection_asset%3Asearch-basic%7Csearch_item%3Ashcomp%7Crow_num%3A1%7CURL_first_level%3Anews%7Ctopic%3Asymbol] rose 0.2% to around 3,885 while the Shenzhen Component added 0.5% to 13,280 on Thursday, with mainland benchmarks touching fresh multi-year highs, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] weakened to around 7.10 per dollar on Thursday, snapping a three-day winning streak and after touching a more than ten-month high in the previous session.

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Currency: (CNY:USD [https://seekingalpha.com/symbol/CNY:USD])

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